1 Sherman Ter 3,672 SF 100% Leased Retail Building Madison, WI 53704 $885,000 ($241.01/SF)

Positioned just minutes from Downtown Madison, across the street from Lake Mendota, 1 Sherman Terrace presents a compelling value-add investment opportunity in one of the city’s most accessible and evolving corridors. This mixed-use commercial condo offers a blend of retail and office tenancy, with the flexibility to reconfigure or redevelop for increased density. The property spans 3,672 SF and sits on a 6,645 SF rear lot, zoned TR-V2, allowing for a range of commercial and residential uses. The City has been informed that the zoning will be changing as it has in the past without impedance.
Ideal for owner-occupants or investors, marked well below market appraisal to facilitate owner relocation, the building is well suited for separate units and is separately metered (except sewer), and features 15 on-site parking stalls with potential for expansion throughout the property where the backyard has been used for storage. A demising wall can be installed to split occupancy, enabling partial owner-use while leasing the remainder on a NNN basis. The site’s proximity to major arterials and downtown amenities enhances its appeal for tenants and customers alike. The sewer was just radically upgraded and enlarged to facilitate future expansion. The current owners have proposed expansion adding two floors above for apartments/condos as the current building can support.
With redevelopment potential and strong traffic counts, this asset is well-positioned for long-term growth. Whether repositioned for higher density or maintained as a stable income-producing property, 1 Sherman Terrace offers strategic upside in a dynamic Madison submarket. With the recent separation of the owners and relocation plans, the property is being offered at a current discount for motivated sellers.
Built as a Rennebohm Pharmacy in 1949 (see pictures) by Governor Oscar Rennebohm, 1 Sherman Terrace has outlived several transitions and business, from the pharmacy it was originally attended as, to Post Office, Daycare Center, Cafe, Bakery, Gourmet Classroom, Insurance Office, Architect Office, Vintage Stereo Shop and Record Store, to Events Venue Center. It currently houses the owner's businesses that has been in the process of relocating.
Great neighborhood, wonderful neighbors and terrific condo association nearby. Very positive neighborhood meeting regarding redevelopment plans in 2023 with city, alderman, and neighborhood and condo owners and tenants.